MTDC completes waterway between Herethere & Hulhudhoo

Monday, 29 June 2009 16:46

Maldives Tourism Development Corporation (MTDC) has revealed that a waterway between Herethere Island Resort and Hulhudhoo has been completed on 20 June.
MTDC in a statement issued on Thursday revealed that all associated works such as installing geo textile materials and placing rock boulders and sand bags on the embankment of the waterway has also been completed.

MTDC press release comes at a time when MTDC and Yacht Tours, current lessee of Herathere Resort, are engaged in legal battle in court. Yacht Tours leased out the 546 bed Herethere Resort from MTDC on 1June 2008.

Yacht Tours stopped paying rent in December 2008, claiming MTDC had failed to fulfill contractual obligation to build a waterway between Herethere Resort and Hulhudhoo, an adjoining inhabited island, by 30 November 2008.

MTDC responded by terminating the company’s contract and giving Yacht Tours seven days to hand over the resort.

In response, Yacht Tours lodged a civil case to sue MTDC for US$67 million, which was later reduced to US $ 45million in compensation for the incomplete channel and projected losses.

However, Civil Court ruled against Yacht Tours saying that the court could not establish if the company actually lost the amount.

However, Yacht Tours has again submitted case against MTDC for US$55 million in damages due to the dispute over Herethera Resort. The company claimed the dispute led to a low occupancy level and that tour operators have informed that they would no longer send tourists to the resort.


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